42Q-MES0161 Material Allocation

Material Allocation

 

Factories are complex, busy places with a lot of systems, machinery, and processes in place. Technology plays a key part in the manufacturing world. We see the benefits of it clearly through lot traceability — you can streamline your supply chain and have confidence in all of the steps along the way.

The inventory management system allocates a specific quantity of materials, as determined by purchasing workers, to meet customer demand. Allocating material to a sales order does not remove the quantity from inventory. The allocation creates a projection of the amount of material the company will need to meet the current demand or sales orders.

 

What Is Material Allocation ?

Material Allocation is a functionality that provides users with the ability to create lots, allocate materials, and track the material by the location assigned to an MFG Line in specific locations.

 

Material allocation plays an important role in the initial stage of production planning. Without a good allocation of available material to order, companies might face a large amount of tardiness penalty associated with late completion which also affects customer satisfaction.